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Sharm Dreams studies sale of hotel assets to provide liquidity - Daily News Egypt

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Sharm Dreams studies sale of hotel assets to provide liquidity

Company plans to assign three consulting firms to evaluate assets that are planned for sale

The Sharm Dreams Company for Tourist Investment is considering disposing of some of its assets to increase its liquidity.

The company is looking into assigning three consultancy offices to evaluate its real estate and hotel assets, in addition to assigning an independent financial advisor to study net property rights.

Sharm Dreams also intends to send a letter to the Commercial International Bank (CIB), stating its desire to obtain offers to acquire some of its current hotel assets from the bank. The move comes in light of the bank’s large base of interested clients, and Sharm Dreams’ desire to promote those assets.

The company’s Board of Directors is also studying a proposal to restructure its assets and diversify its asset portfolio. It is anticipated that this will take place by directing the company’s investment portfolio towards areas with promising investment opportunities, as part of the state’s plan to open new areas and cities on a global level.

Sharm Dreams also intends to submit a request to the Central Bank of Egypt (CBE) to explore the extent of the company’s ability to benefit from its initiative regarding settling bad loans in the tourism sector.

This would also see the company’s negotiation committee assigned to prepare a detailed study of alternatives to bank loans with the aim of reorganising the financial structure of the company.

Financial statements released by Sharm Dreams revealed that the company has shifted from profitability to losses during the first half (H1) of 2020. The statements also show that the company recorded net losses amounting to EGP 27.54m, compared to EGP 30.35m in profits during the same period last year.

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